Market commentary for Tuesday, March 20, 2007
Monday’s up day was on lighter volume. So once again we are rising on light volume. No real catalyst for today’s advance, it was really more of a circus. The overseas markets were up and the US market was poised off Friday’s action for higher today, so we received that. The Nasdaq and Semi’s lagged the action and did not help see the upside excitement at all into the two day FOMC meeting for me. To be honest today’s action was disappointing to me. The gap threw off the balance and was totally overdone, does that mean the market will correct it? YES, eventually that will happen, WHEN is the question.
Gold close up slightly on the day 40 cents to close at $654.30. Metals were pretty strong today with copper being a real focus. Crude fell 52 cents to close at $56.59. As we head into spring break trips and then summer around the corner, driving season picks up. As crude continues to fall, we have to watch supply levels each week for any change in the balance of supply to demand.
Tuesday and Wednesday the action should slow until we hear from FOMC Fed Chairman Bernanke on Wednesday afternoon. Banks were strong Monday along with brokers, but tech lagged behind, this leaves me to think we pullback early Tuesday and then find the upside and range.
Economic Data for the Week of March19 – 23 Tuesday 08:30 Housing Starts, 08:30 Building Permits, 10:00 State Street Investor Index, 02:30 FOMC BEGINS (two day meeting), Wednesday 07:00 MBA Purchase Applications, 10:30 Crude Inventories, 02:15 FOMC Announcement, Thursday 08:30 Initial Claims, 10:00 Leading Indicators, 10:30 Natural Gas inventories, 12:00 Fed Governor Kroszner speaks, 01:30 Fed Governor Kohn speaks, Friday 09:15 Phil Fed Bank Pres. Plosser speaks, 10:00 Existing Home Sales, 11:30 NY Fed Bank Pres Geithner speaks.
Some of the earnings for the week of March 19: Tuesday pre market CRZO, CMC, SUP and after the bell ADBE, CTAS, DRI, ORCL. Wednesday pre market DIET, GMTN, MS, ROST and after the bell HIS. Thursday pre market BKS, CAG, EBS, FDX, FRED, GIS, KBH, SCHL, WSM and after the bell COMS, ESIO, JBL, NKE, PALM. Friday nothing of interest.
Compx (Nasdaq composite) closed +21.75 at 2394.41. Support: 2373.74, 2365.69, 2348.17, 2333.30 (38.2%), 2313.01. Resistance: 2404.80, 2307.91, 2431.50. Daily chart below
When starting out, don’t worry about the size of your portfolio. Any amount of funds, bring expectations of discipline, which brings success. Don’t let the money lead you, let it motivate you to do the right thing. Nothing creates discipline other than thinking and controlling your choices, don’t let the market control you and you’ll find your success.
